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The Star
19-07-2025
- Business
- The Star
Villa, luxury home sales rise in Hong Kong as the rich pounce on bargains
Sales of villas, bungalows and luxury homes in Hong Kong soared to a three-year high in the first six months of this year, as an influx of wealthy immigrants fuelled the hunt for bargains on the top end of one of Asia's priciest residential property markets. There were 286 registered transactions of villas in the first half, a jump of 23.3 per cent from the same period last year, according to data provided by Centaline Property, one of the largest real estate agencies in the city. The sales value of the property fell 15.3 per cent to HK$12.34 billion over the same period, due to a 'significant decline' in the sales of primary homes valued at more than HK$500 million, the data showed. The rising volume reflected the 'improved sentiment in both the property and stock markets', and was supported by the start of an interest rate reduction cycle and the city government's relaxation of investment immigration rules, said Centaline's senior associate director Yeung Ming-yee. Homebuyers and investors are 'actively entering the premium luxury housing market, stimulating capital inflows and driving a recovery,' she added. 'Developers delayed the launch of new luxury projects over the past three years, leading to insufficient supply that kept primary-market transactions at a relatively low level of around 30 deals,' said Yeung. She added that the primary market's total transaction value of HK$4.4 billion was 48.1 per cent lower compared to the same period last year. Lived-in luxury homes sold well, with the volume rising 27.2 per cent to 257 deals during the first half, while the transaction value increased 30 per cent to HK$7.9 billion. The bullish outlook is likely to continue into the second half of the year, with the full-year sales forecast rising to a four-year-high of 500 deals, as Hong Kong's stock market boom attracts more companies to seek initial public listings (IPOs), while the government's aggressive talent scheme draws more senior executives to relocate to the city. 'It is anticipated that transactions for new primary residential properties valued over HK$50 million on Hong Kong Island could challenge the 100-unit mark in the second half of the year,' said Jimmy Lee, director for Hong Kong Island at Midland Realty, another large real estate agency. Luxury homes at The Peak and the Southside district of the island are likely to be favoured particularly by wealthy immigrants under the Capital Investment Entrant Scheme and its cash-for-residency initiative, which had received more than 1,500 applications as of June, Lee said. The measure has so far netted more than HK$46 billion in investments to Hong Kong, he added. With US$13.5 billion in funds raised via IPOs in the first half, the Hong Kong stock exchange ranked first globally in terms of maiden share sale activities. This would only augur well for Hong Kong's luxury property segment, said Victoria Allan, founder and managing director at Habitat Property, a boutique property agency that focuses on the upscale homes market. 'There is a real demand for luxury houses and we see that increasing,' she said. 'The pickup in activity in the luxury transaction volumes gives buyers confidence that the market prices will go up this year.' - SOUTH CHINA MORNING POST
South China Morning Post
16-07-2025
- Business
- South China Morning Post
Sales of villas, luxury homes rise to 3-year high in Hong Kong on demand by wealthy buyers
Sales of villas, bungalows and luxury homes in Hong Kong soared to a three-year high in the first six months of this year, as an influx of wealthy immigrants fuelled the hunt for bargains on the top end of one of Asia's priciest residential property markets. Advertisement There were 286 registered transactions of villas in the first half, a jump of 23.3 per cent from the same period last year, according to data provided by Centaline Property, one of the largest real estate agencies in the city. The sales value of the property fell 15.3 per cent to HK$12.34 billion over the same period, due to a 'significant decline' in the sales of primary homes valued at more than HK$500 million, the data showed. The rising volume reflected the 'improved sentiment in both the property and stock markets', and was supported by the start of an interest rate reduction cycle and the city government's relaxation of investment immigration rules, said Centaline's senior associate director Yeung Ming-yee. The Villa Rosa project in Tai Tam on the southeastern part of Hong Kong Island on January 23, 2024. Photo: May Tse Homebuyers and investors are 'actively entering the premium luxury housing market, stimulating capital inflows and driving a recovery,' she added. Advertisement 'Developers delayed the launch of new luxury projects over the past three years, leading to insufficient supply that kept primary-market transactions at a relatively low level of around 30 deals,' said Yeung. She added that the primary market's total transaction value of HK$4.4 billion was 48.1 per cent lower compared to the same period last year.
The Star
13-07-2025
- Business
- The Star
Shanghai's luxury home sales boom as wealthy buyers flock to ‘safe haven' assets
Luxury home sales in Shanghai are defying a nationwide slump, as wealthy buyers snap up 'safe haven' assets amid expectations of further price gains – a trend likely to continue given scarce inventory and rising land costs. In the first half of this year, the mainland's financial capital led in transactions of premium homes, accounting for sales of 482 new homes priced above 50 million yuan (US$7 million), more than 80 per cent of the total across 30 cities, according to data compiled by China Real Estate Information Corporation (CRIC). For homes priced above 30 million yuan, transactions in the city reached 1,096 units, accounting for 60 per cent of the 30-city total. Two other tier-one cities, Beijing and Shenzhen, followed with 12 per cent and 11 per cent, respectively, the research institute added. Nationwide, sales of new homes priced above 50 million yuan jumped nearly 50 per cent from a year earlier to 591 units, while sales of lived-in units in the same price category increased 43 per cent to 173 in the same period, according to CRIC. The surge was underpinned by both demand and supply factors, analysts said. On the demand side, Shanghai's premium homes were emerging as a 'clear safe-haven asset, offering stability amid relatively high risks in other cities', said Lu Wenxi, an analyst at Centaline Property in Shanghai. 'Given the scarcity of residential properties in the city centre and the solid fundamentals of the homes themselves, investing in premium homes makes sense from both a risk and value-appreciation perspective,' he added. 'After all, there aren't many options for those with capital to deploy.' On the supply side, a policy move last June to scrap the cap on land prices in Shanghai has also helped to sustain the value of properties. Leading developers continue to focus their land acquisitions in prime locations within core cities 'as reflected in the rising land premium rates this year in tier-one and strong tier-two cities', said Shi Lulu, director of Asia-Pacific corporate ratings at Fitch Ratings. New home sales in China were expected to decline by about 15 per cent this year, according to an earlier forecast by Fitch. 'Premium projects in top-tier cities are expected to provide ongoing support for the performance of upgrade-oriented sales,' she said, adding that growth in the high-end segment could help the property sector temper the slowdown. Centaline's Lu said Shanghai's premium home prices would continue to rise. 'Land in the city centre is running out,' he said. 'With no land available, demolition becomes necessary, but the costs of demolition and relocation are rising each year, and housing price expectations are getting higher as costs increase.' Shanghai was also one of China's only cities that managed to defy a broad-based decline in new home prices in June, as the country's property slump is set to enter its fifth year, despite official measures to support the sector that once accounted for a quarter of the country's gross domestic product. Nationwide, new home sales fell to 9.7 trillion yuan in 2024 – less than half the level recorded in 2021, according to government data. - SOUTH CHINA MORNING POST
South China Morning Post
09-07-2025
- Business
- South China Morning Post
Shanghai's luxury home sales boom as wealthy buyers flock to ‘safe haven' assets
Luxury home sales in Shanghai are defying a nationwide slump, as wealthy buyers snap up 'safe haven' assets amid expectations of further price gains – a trend likely to continue given scarce inventory and rising land costs. Advertisement In the first half of this year, the mainland's financial capital led in transactions of premium homes, accounting for sales of 482 new homes priced above 50 million yuan (US$7 million), more than 80 per cent of the total across 30 cities, according to data compiled by China Real Estate Information Corporation (CRIC). For homes priced above 30 million yuan, transactions in the city reached 1,096 units, accounting for 60 per cent of the 30-city total. Two other tier-one cities, Beijing and Shenzhen, followed with 12 per cent and 11 per cent, respectively, the research institute added. Nationwide, sales of new homes priced above 50 million yuan jumped nearly 50 per cent from a year earlier to 591 units, while sales of lived-in units in the same price category increased 43 per cent to 173 in the same period, according to CRIC. Property models are displayed at a real estate sales office in Shanghai. Photo: China News Service/VCG via Getty Images The surge was underpinned by both demand and supply factors, analysts said. On the demand side, Shanghai's premium homes were emerging as a 'clear safe-haven asset, offering stability amid relatively high risks in other cities', said Lu Wenxi, an analyst at Centaline Property in Shanghai. Advertisement 'Given the scarcity of residential properties in the city centre and the solid fundamentals of the homes themselves, investing in premium homes makes sense from both a risk and value-appreciation perspective,' he added. 'After all, there aren't many options for those with capital to deploy.'
South China Morning Post
15-06-2025
- Business
- South China Morning Post
Hong Kong rent surges as demand from mainland Chinese students, professionals soar
Wang Ruoshuo, a 21-year-old student from Hefei, the capital of central Anhui province, is searching for a flat in Hung Hom in southern Kowloon, which is close to her university and the company where she interns. As a first-time renter, however, she has been taken aback by the high prices. Wang and her friends are looking for a two-bedroom unit, budgeting about HK$7,000 to HK$8,000 (US$892 to US$1,019) per person. 'But when we began our search, we found that properties meeting our criteria would cost each of us around HK$10,000,' she said. Wang is not alone in facing a rental challenge. Fuelled by the ongoing demand from mainland students studying in Hong Kong and the influx of workers lured by the city's various talent schemes , , rents were expected to continue to spike, according to analysts and property agent. 'Over 120,000 professionals and university students have already arrived in Hong Kong, contributing significantly to the local residential rental market,' said Martin Wong, senior director and head of research and consultancy for Greater China at Knight Frank. The Hung Hom neighbourhood. Photo: Sam Tsang The Centa-City Rental Index, compiled by Centaline Property Agency, saw its biggest jump in nine months in May, as residential rents rose 1.79 per cent in the first five months of the year.
